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Kidwell to deploy more capital to grow finance arm

Growth of its fledging finance business is on the cards for Braemar Shipping Services, with an eventual move into the capital markets sector a possibility.

London-listed Braemar bought NAVES Corporate Finance last year to enter the finance business for the first time, with the new division helping boost operating results at the shipbroker in the year to 28 February.

Braemar chief executive James Kidwell said this week that all four of the group’s divisions have growth objectives.

“If you are asking me where we might deploy capital, certainly in the finance area, our presence is in Hamburg and London," he said. "We hope to build our presence in financial advisory in other cities in due course. I hope that will start to happen in the coming year."

Braemar NAVES is presently engaged in more than 20 restructuring projects and is also working alongside the sale-and-purchase desk of shipbroker Braemar ACM.

The Braemar NAVES team is also involved in raising capital for private shipowners. At a breakfast briefing this week, Kidwell said a move into the capital markets should not be ruled out.

“The only thing we don’t do is capital markets," he said. "But one day, hopefully.”

Naves deal helps boost full-year results at Braemar

Kidwell said the financial community has got a lot more involved in either ownership of the steel or ownership of the debt that finances the steel.

“For us to talk that language is a big requirement,” he said. “We are advising on a number of potential transfers of bank shipping debt portfolios. This is new to Braemar. It’s where we should be and NAVES are getting us there.”

Braemar reported an underlying operating profit of £8.2m ($11.1m) for the period — up from £4.2m 12 months ago — that hit the top end of its previous guidance.

Analysts at Stockdale Securities described the results as being in line with expectations, while the operating profit of £1.8m from Braemar NAVES was branded as strong.

Shipbroking, with an underlying profit of £7.7m, which was down from £7.9m a year ago, was resilient, according to the analysts, with the forward orderbook up by 12% to $44m.

“We were involved in some significant newbuilding activity,” Kidwell said. “And I think our sale-and-purchase activity has been growing and is increasingly strong, particularly on the dry bulk side, where prices have been generally rising.”

Braemar ACM saw Mike Rudd exit, along with some brokers in Singapore, in the past year.

Braemar finance chief standing down

However, it has hired David Collins to its tanker team, with shipbroking further boosted by the purchase of Atlantic Brokers Holding, adding coal futures trading to the business for the first time. The dry, tankers and chemical teams have all recruited this year.

“We have done well in terms of strengthening our core position,” Kidwell said. “I suspect that we have achieved a lot. It’s a fluid market and we will, to a certain extent, be in the market. Are we rushing out to do what we did last year? I would say probably not.”

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Kidwell to deploy more capital to grow finance arm

Growth of its fledging finance business is on the cards for Braemar Shipping Services, with an eventual move into the capital markets sector a possibility.

London-listed Braemar bought NAVES Corporate Finance last year to enter the finance business for the first time, with the new division helping boost operating results at the shipbroker in the year to 28 February.

Braemar chief executive James Kidwell said this week that all four of the group’s divisions have growth objectives.

“If you are asking me where we might deploy capital, certainly in the finance area, our presence is in Hamburg and London," he said. "We hope to build our presence in financial advisory in other cities in due course. I hope that will start to happen in the coming year."

Braemar NAVES is presently engaged in more than 20 restructuring projects and is also working alongside the sale-and-purchase desk of shipbroker Braemar ACM.

The Braemar NAVES team is also involved in raising capital for private shipowners. At a breakfast briefing this week, Kidwell said a move into the capital markets should not be ruled out.

“The only thing we don’t do is capital markets," he said. "But one day, hopefully.”

Naves deal helps boost full-year results at Braemar

Kidwell said the financial community has got a lot more involved in either ownership of the steel or ownership of the debt that finances the steel.

“For us to talk that language is a big requirement,” he said. “We are advising on a number of potential transfers of bank shipping debt portfolios. This is new to Braemar. It’s where we should be and NAVES are getting us there.”

Braemar reported an underlying operating profit of £8.2m ($11.1m) for the period — up from £4.2m 12 months ago — that hit the top end of its previous guidance.

Analysts at Stockdale Securities described the results as being in line with expectations, while the operating profit of £1.8m from Braemar NAVES was branded as strong.

Shipbroking, with an underlying profit of £7.7m, which was down from £7.9m a year ago, was resilient, according to the analysts, with the forward orderbook up by 12% to $44m.

“We were involved in some significant newbuilding activity,” Kidwell said. “And I think our sale-and-purchase activity has been growing and is increasingly strong, particularly on the dry bulk side, where prices have been generally rising.”

Braemar ACM saw Mike Rudd exit, along with some brokers in Singapore, in the past year.

Braemar finance chief standing down

However, it has hired David Collins to its tanker team, with shipbroking further boosted by the purchase of Atlantic Brokers Holding, adding coal futures trading to the business for the first time. The dry, tankers and chemical teams have all recruited this year.

“We have done well in terms of strengthening our core position,” Kidwell said. “I suspect that we have achieved a lot. It’s a fluid market and we will, to a certain extent, be in the market. Are we rushing out to do what we did last year? I would say probably not.”